But that wasn't the only major news in August. Developers introduced a new software called Segregated Witness, or SegWit. "SegWit is a clever solution that essentially increases transaction capacity," Aaron Lasher, the chief marketing officer of Breadwallet, a bitcoin technology company, told Business Insider.

Sheba Jafari, the head of technical strategy at Goldman Sachs, thinks bitcoin is close to a top. In a note to clients, Jafari suggested bitcoin would climb as high as $4,827 before correcting, meaning, in her mind, it's fully valued.